MICHIGAN STATE FAIR & EXPOSITION CENTER

AUTHORITY BOARD OF DIRECTORS MEETING

November 19, 2007

Pursuant to notice duly given, a meeting of the Michigan State Fair Authority was brought to order by Mr. Mark T. Gaffney, Chairman, on this date, beginning at 1:33 PM, in the Administration Building, Conference Room, at the Michigan State Fairgrounds, 1120 W. State Fair Avenue, in Detroit. 

PRESENT:     Mark T. Gaffney, President Michigan AFL/CIO (via teleconference)

                        Kenneth J. DeCock, Partner of DeCock and Sons LLC/Boyka's Farm Market

                        Pat G. Albright, Owner of Albright Farms

                        Elaine Driker, Former Director, Detroit Orientation Institute @ WSU

                        Robert G. Porter, Former Mayor of the City of Ferndale

                        Thomas G. Coon, Ph.D., Professor and Director of MSU Extension

                        Jeff Haarer, Representing Don Koivisto,  Director of MDA

                        Steven R. Jenkins, MSF General Manager

ABSENT:       Edward Deeb, President & CEO of MI Food & Beverage Association

                        Robert Burns, Representing Lisa Webb Sharpe, Director of DMB

Also Present:     Byna Camden, ICARE and surrounding State Fair resident

                         Dale Jurison, Representing Wade Shows

                         Malcolm "Butch" Rhodes and Don Childs, Next Shot Golf Center

                         Margaret Fletcher, MSF Finances

                         Johnnie Bennett, MSF Secretary

ACCEPTANCE OF AGENDA and APPROVAL OF MINUTES

ON MOTION BY Mr. Coon, supported by Mr. DeCock and carried, the agenda was accepted for today's Board meeting. The MOTION passed unanimously.

ON MOTION BY Mr. Porter, supported by Mrs. Driker, and carried, the minutes of the meeting held on October 10, 2007 were reviewed and approved as written.  The MOTION to approve the previous minutes was unanimously passed.

CHAIRMAN'S COMMENTS

Creation of an Entertainment Sub-Committee - Chairman Gaffney greeted everyone to today's meeting of the Board.  Having discussed this matter in the past, he posed the question as to whether the Board wanted to create a sub-committee to address and explore various entertainment issues.  Amongst the issues to be considered are:  How much money should we designate for headliner entertainment?  Do we need to hire the assistance of an entertainment director/stage manager?  Do we want to charge the Fair Manager and his staff with the responsibility of reviewing and negotiating the entertainment for the Fair and bringing information back to the Board or do we want to create a subcommittee from the Board members to be a part of the entertainment booking process?   Mr. Albright stated it would be good if the Board had demographics or any data or basic information that would help us to know what our audiences enjoyed or did not enjoy.  Mr. Jenkins stated that he is presently working with Rich Padgen of Radio Disney and discussing the possibility of bringing in two or more Disney acts for 2008.  Mr. Jenkins stated that we lost a couple of acts last year because of the delay in the State's standard approval process.  He added that we recently made a request to DMB for approval to spend up to $300,000, which would be the total for our headliner entertainment budget in 2008. 

After some discussion, it was agreed that the Fair would continue offering Gold Circle Reserve seating for some concerts. It was also agreed that Disney is good, we should put emphasis on diversity and having something music-wise for everyone and that we should try to brand our entertainment.  Chairman Gaffney stated the Board, as a whole, would serve as a committee for the entertainment.  Mr. Jenkins agreed to provide the Board each month with an update on entertainment.

Reconsideration of Midway Contract - Chairman Gaffney stated that at last months meeting we heard from a competing Amusement Games and Ride company prior to voting to bid out the midway contract.   As a result, Wade Shows sent a letter to the Board asking for a reconsideration of their action and that they desired to be placed on today's meeting agenda.   Chairman Gaffney then introduced Dale Jurison, a lobbyist and representative for Wade Shows who offered a brief presentation on the history, advantages and special services offered by Wade Shows. 

A very lengthy discussion took place regarding the request being made by Wade Shows to extend their current contract.   On a motion by Dr. Thomas Coons, supported by Robert Porter the Board approved on a vote of 3-yeas, 2 nays, and 2 abstentions reconsideration of last month's action that required the midway contract to be re-bid.

After additional discussion, the Board voted 5 to 1 in support of the General Manager's decision to exercise a one-year option to the midway contract currently held by Wade Shows.  Further, it was directed that DMB continue with processing an RFP for the midway contract for the 2009 State Fair.

GENERAL MANAGER'S REPORT

Mr. Jenkins gave a report on the following:

2008 State Fair Dates - Mr. Jenkins proposed that the 2008 State Fair run 11 days as opposed to 13 days.  He added that on Thursday, August 21, 2008, a private group who would like to rent the Fair for a day to celebrate the annual Jewish Olympics being held in Detroit next year.  Mr. Jenkins added that while all of the special Fair events and attractions would be up and running for the private event, the Fair would not be open to the public during this private rental arrangement.

The following dates for the 2008 Michigan State Fair were presented: Friday, August 22, 2008 thru Monday, September 1, 2008.  The Fair exhibitors, livestock shows and competitions will commence on Thursday for the Livestock and Community Arts program.  Thus the family members and friends wanting to come to the Fairgrounds and watch their child compete will be allowed onto the Fairgrounds prior to the Opening Day of the Fair.  It was discussed and the Board agreed to further explore how we would monitor and allow individuals entry onto the Fairgrounds on Thursday, August 21st for the special Livestock and Community Art competitions.

Non-Fair Events and New Attractions - Wayne State Men's Hockey has been cancelled after this year.  Mr. Jenkins reported that it is his understanding that the women's program and the Little Caesars Hockey program is still in place.  Mr. Jenkins stated he had not been given any prior notice of Wayne State Men's Hockey program leaving the Fair and had only learned of this change while reading the newspaper.  Mr. Jenkins added that he would provide the Authority Board with an update of any information deemed of interest, before the monthly meetings.  He added that the discontinuation of the WSU Men's Hockey program does not have a financial impact on the Fairgrounds, as we have a contract in place with Little Caesars and not WSU. 

The Detroit Equestrian Club will hold their first International Horse Show December 7-9, 2007 at the State Fairgrounds.   The American Cancer Society has agreed to partner with the Detroit Equestrian Club for a special Horse Riding program this winter for children and individuals who suffer with cancer.

Mrs. Driker stated she's very hopeful that tomorrow's Press Conference would be just the beginning of a greater ambitious marketing effort to showcase all of our many new and wonderful activities taking place at the State Fairgrounds. 

Mr. Jenkins was happy to report many of our year-round partners will be attending the Press Conference to share exciting information about their various programs and activities taking place daily at our Fairgrounds.   He stated PVS Chemicals will be announcing,  "You Can Be A Chemist", a special event to take place in March 2008, with finalist participating from 41 schools throughout the metro area.  A flyer highlighting special events at the Fairgrounds was distributed.  Among these events were "Hoops, Horses, Hockey and Hits".  Mr. Jenkins reported a representative from Joe Dumars Fieldhouse, the new Detroit Equestrian Club, Little Caesar's Hockey and Dave Bergman's (Detroit Tigers) Hitting Zone will join us at the Press Conference to talk about the new and exciting events taking place at the Fairgrounds.  He added Joan LeMahieu of the Parade Company would also be there to share information about the Hob Nobble Gobble taking place at the Fairgrounds this Wednesday, the evening before the Detroit Thanksgiving Day Parade.    Mr. Jenkins invited the Board members to attend tomorrow's Press Conference to be held in the Community Arts Auditorium.

Contract Extensions - Mr. Jenkins distributed a document highlighting the Michigan State Fair: Major Contracts, updated as of October 29, 2007.  He stated that bringing each contract to the Board for determining action would be cumbersome and somewhat inefficient.  Mr. Jenkins agreed to provide 90 days notice of his intended actions on any contract that exceeded $25,000 annually to allow for the Board to raise any concerns/issues with his intended action on such contracts.

FINANCIAL REPORT

Mr. Jenkins distributed the final FY 2007 Financial Report.  With the assistance of DMB who agreed to a legislative transfer to cover any of our expenditure shortages this year, he was happy to report that the 2007 Fairgrounds financial operations were much improved with the Fairgrounds basically breaking even.  Mr. Jenkins reported that all of the new year-round activities and special programs should put us in a position to be even more financially successful next year.

A brief discussion was held regarding the Financial Report distributed.  The Board thanked Mr. Jenkins for the Financial Report, which was well received.

OLD BUSINESS

Other than the reconsideration of the midway contract, there was no other old business to report.

NEW BUSINESS

The Board welcomed Mr. Malcolm "Butch" Rhodes and Mr. Donald Childs of Next Shot Golf to today's meeting.   Mr. Rhodes greeted the Board and thanked them for the opportunity to offer a presentation today.

Mr. Rhodes, PGA Member and Pro Golfer, gave a brief introduction of himself and his partner, Mr. Don Childs, Golf Course Architect.  Mr. Rhodes stated Mr. Childs and Mr. Michael J. Guthrie, Attorney, are both principle investors with Next Shot Golf.  Mr. Rhodes distributed to each of the Board members a full colored copy of the Next Shot Golf Center proposal for the Michigan State Fairgrounds.  He and Mr. Childs then offered a very detailed presentation for their proposed project. 

Mr. Rhodes reported they have recently signed an agreement to rent, on a month-to-month base, a portion of the Michigan Mart Building at the State Fairgrounds.  He added this rental arrangement is "Phase One" of their proposed project and the activities in the Michigan Mart Building are scheduled to begin next month in December 2007.  Mr. Rhodes stated this is a temporary portion of the project and this phase will include a Pro Shop, Golf Simulators, Practice Bays and a Teaching Bay.  He added Phase One would help build contacts and channel interest to this site. 

A lengthy discussion was held regarding the proposed layout and site design for each of the phases of the golf project.  Mr. Rhodes stated additional phases of the project would include a Driving Range, "putt-putt" Adventure Golf, an Indoor and Outdoor Range, a Club House, Activity Rooms and a Café.

ON MOTION BY Mayor Porter, supported by Mrs. Driker, and carried, the Authority Board agreed to accept the concept of the Next Shot Golf Proposal presented at today's meeting.  The Board found the concept acceptable in application to the property located on the Southeast end of the Fairgrounds.  The MOTION was unanimously passed.

Chairman Gaffney thanked Mr. Rhodes and Mr. Childs for their interest in becoming partners of the State Fairgrounds and invited Mr. Rhodes to come back in the future to present their financial plan for the project.  Mr. Gaffney encouraged Mr. Rhodes to continue thinking about how the whole golf center project fits into the future plans for this facility. Mr. Rhodes and Mr. Childs thanked the Board for their time today and stated they would certainly keep their eyes open to additional partnerships that may tie-in to the development of the sports theme at the Fairgrounds.

PUBLIC COMMENT

There was no public comment brought before the Board.

DATE for NEXT MEETING

The next meeting of the Michigan State Fair Authority Board was scheduled for Wednesday, December 12, 2007, beginning at 1:00 p.m. in the Administration Building Conference Room, at the Michigan State Fairgrounds, in Detroit.

Please note: The DESC Strategic Planning Session will be held from 10:00 a.m. to 12:00 Noon with a special Holiday Luncheon immediately following.  The MSF Authority Board of Directors, the DESC Strategic Planning Committee and the MSF Staff members will all be invited to attend the Holiday Luncheon from 12:00 Noon to 1:00 p.m. (location to be determined). 

ADJOURNMENT

ON MOTION BY Mr. Coon, supported by Mrs. Driker, and carried, the meeting was adjourned at 4:53 p.m.